Effect of financial inclusion on maize productivity among rural farming households in Ankpa local government area of Kogi State, Nigeria
DOI:
https://doi.org/10.25299/ijbs.2025.22377Keywords:
Financial inclusion, productivity, financial servicesAbstract
Purpose: Farmers' inadequate access to formal financial services has been reported to impede their ability to purchase improved seeds, fertilizers, and equipment, necessary for increasing productivity in Nigeria. However, the paucity of empirical evidence on the effect of financial inclusion on productivity among rural farming households in Kogi State constitutes a gap in the literature.
Design/methodology/approach: This study used primary data gathered through questionnaires. A multi-stage sampling method was applied to select the research participants. The data collected were analyzed using both descriptive and inferential statistical methods.
Findings: Most of the maize farmers were men (52.78%), married (57.64%), and still within their active working age. Most households had between 4 and 6 members. The results showed that Automated Teller Machines (ATMs), savings accounts, Point of Sale (POS) services, visits to the bank, and online transfers had distributions of 89.58%, 81.25%, 80.56%, 86.81%, and 43.66%, respectively. Most households fall within the low (38.89%) and medium (29.86%) inclusion categories. The study also found that age, gender, education level, household size, and access to financial services were the main factors influencing farmers` maize productivity in the area.
Limitations and Research implications: The study utilized cross-sectional data, it is limited in that it does not show the time effect of the effect of financial inclusion on maize productivity.
Practical Implications: The findings of the study showed that having access to financial services had a strong and positive effect on maize production among rural farming families. Therefore, it is important to increase efforts to include more farming households in the financial system, as this can help improve their agricultural productivity.
Originality/value: This study served as eye opener to practitioners and relevant stakeholders of the effect of financial inclusion on rural smallholder farmers’ productivity
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References
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